Air Arabia Rating Updated as United Securities Notes Q2 Performance

05:50 AM EDT, 08/26/2026 (MT Newswires) -- United Securities LLC revised its rating for Air Arabia (DFM:AIRARABIA) to sell from neutral following the Dubai-listed carrier's second-quarter earnings report. In a Wednesday note, the research firm said the carrier's second-quarter net profit of 88 million Emirati dirhams "significantly underperformed" its forecast. Revenue also declined 3.4% year over year to 1.7 billion dirhams, which surpassed the research firm's estimate by 8%. "While revenue exceeded our forecast, profitability and overall margins fell materially short of expectations. Based on the current results, we retain our 2026e revenue estimate of AED 8bn but reduce our net profit to AED 1bn (from AED 1.5bn). Given the persistent geopolitical tensions, risks to growth remain elevated amid ongoing operational restrictions. Accordingly, we retain our target price of AED 4.40 per share, implying 11% downside from current levels," analysts wrote.